Punishment: (1) If a person carries out the act of financial intermediation without obtaining the license pursuant to this Act, such a person shall be punished with a fine not exceeding Twenty Thousand Rupees or imprisonment for a term not exceeding Six months or both punishments. Where any institution has done such an act, the office-bearer doing the activities of such an institution shall be liable to such punishment.
(2)If any institution does not abide by this Act or the R framed under this Act or any order or direction given by the Bank or does not provide or submit any details or document demanded pursuant to this Act or provides false details deliberately and such act has resulted in any loss and damage, the concerned employee shall be punished with a fine not exceeding Ten Thousand Rupees or imprisonment for a term not exceeding Six months or both punishments, and the amount in question shall be recovered from such an employee.
(3) If any employee of an institution misappropriates the cash or in-kind of the institution or uses the same for his or her personal purpose, such an employee shall be punished with a fine equal to the amount in question or imprisonment for a term not exceeding Five years or both punishments, and the amount in question shall be recovered from him or her.
(4) If any employee of an institution cheats or illegally grieves or harasses a borrower, the Bank or concerned party may institute action against him or her in accordance with the prevailing law.
Action may be taken pursuant to prevailing law: If any institution does any act punished under the prevailing law, nothing contained in this Act shall be deemed to bar the taking of action under such law.